McGill Manufacturing had 900 units in its work in process inventory at the beginning of a month, which were 40 percent were complete with respect to labor, and 100% complete with respect to materials, and overhead. The firm transferred 5,130 units to the finished goods inventory during the month and there were 680 units which were 35 percent complete and still in process at the end of the month. Equivalent production for the month was

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Quizplus · Accepted Answer

Equivalent units of production (EUP) are calculated for both materials and conversion costs (labor and overhead). Given that materials are 100% complete for beginning and ending inventory, we only need to calculate EUP for labor and overhead.For beginning inventory, 900 units were 40% complete, so for labor and overhead: 900 units * 40% = 360 equivalent units.During the month, 5,130 units were completed and transferred out, so they are 100% complete for labor and overhead: 5,130 units * 100% = 5,130 equivalent units.For ending inventory, 680 units were 35% complete, so for labor and overhead: 680 units * 35% = 238 equivalent units.Adding these together for labor and overhead: 360 (beginning inventory) + 5,130 (transferred out) + 238 (ending inventory) = 5,728 equivalent units.However, since materials were already 100% complete for all units, we consider the full amount of units processed for materials, which is the same as the units transferred out plus ending inventory, because materials are added at the beginning of the process. This does not affect the calculation as presented in the options, indicating a possible misunderstanding in the calculation or the presentation of options.Given the options provided and the typical calculation method for equivalent units of production, none of the answers directly match the calculated value. However, the closest approach to a standard calculation would involve considering the completion rates for labor and overhead, which was attempted above. It seems there might be a mistake in the calculation or misunderstanding of the question's requirements based on the provided options. Therefore, based on the standard approach to calculating equivalent units of production and the information given, none of the options accurately reflect the correct calculation. This suggests a need for clarification or correction in either the question's details or the understanding of equivalent units of production calculation.

McGill Manufacturing Had 900 Units in Its Work in Process